| Individual
401 (k) Plans
An individual 401 (k) plan for owner-only-businesses,
those with no employees other than the owner’s spouse
and no plans to add employees in the near future.
Key Benefits of an Individual
410 (k) Plan:
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Works like a 401 (k)
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Both salary deferrals and
profit sharing contributions are discretionary.
You do not have to make deferrals or a profit
sharing contribution each year.
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Rollovers from other eligible
plans, including traditional IRAs, are permitted
for consolidation ease.
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Contributions are tax deductible,
and earnings accumulate on a tax-deferred
basis.
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Loans are available.
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Who Can Establish:
Annual Contributions:
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All contributions are discretionary.
Compensation is earned income for self-employed
individuals or unincorporated businesses.
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The maximum salary deferral
contribution is the lesser of $16,500 or 100%
of your compensation.
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The profit sharing contribution
cannot exceed 25% of your eligible compensation.
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Combined contributions
(both salary deferrals and profit sharing)
cannot exceed the lesser of 100% of compensation
of $49,000.
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Additional catch-up contributions
of up to $5,500 are available if you are age
50 or older.
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Individual 401 (k) Candidates:
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Corporation, partnerships,
sole proprietorships, and nonprofit entities
that have no full time employees.
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Owner-only business with
part-time or seasonal employees that can be
excluded from plan coverage.
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Owner-only businesses with
their spouse being the only employee.
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Contact a LPL Investment
Consultant to go over your options for retirement.
Financial Advisors of LPL Financial are Registered Representatives with, and Securities, Advisory Services and Insurance Products are offered through LPL Financial and its affiliates, Member FINRA/SIPC. LPL Financial is not a registered broker/dealer. Investments are: Not FDIC insured, may lose value, are not bank guaranteed, and are not obligations of LPL Financial. LPL Branch Office located at 1311 Carolina Ave, Washington, North Carolina 27889. Investment Advisory Services offered through LPL Financial, a SEC Registered Investment Advisor
FINRA (www.FINRA.org ) SIPC (www.sipc.org)
This site is designed for U.S. residents only. The services offered within this site are offered exclusively through our U.S. registered representatives. LPL Financial U.S. registered representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.
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